3/18/2010

Motor Insurance - The robbing must stop

The headline in ST, Insurance relief for motorists! What relief? They have increased the premium over the last few years by at least 40 to 50% and they said any rise this year will be marginal. What a hogwash.
Look at the numbers given, record premium collected at $1.08b. Claims were $44.5m last year from $214m the year before. So where is the big losses incurred by the industry? What we are seeing are big profits.
Who is responsible to stop the robbing of motorists by the insurers? Motor insurance is compulsory and motorists cannot say no but just pay grudgingly. Isn't there anyone or agency or ministry responsible to look after the interests of the motorists?
Oh, a report is coming out today from the Motor Insurance Taskforce. And everyone knows that there is a big scam in motor insurance claims. And the buck was simply passed to the innocent motorists to pay. How convenient! How could this happen here? Let's see how much more will motor insurance premium be raised.

8 comments:

Since these robbers are so busy fleecing motorists and have neither the time nor a pressing impetus from anyone to think of a solution to lessen our misery, I suggest they implement an ICUP system. ICUP stands for Insurance Coverage Usage Pricing. As the term suggests, you pay what you use. Premiums will be calculated based on the preceding year's odometer readings. It makes sense because the less you travel on the roads the less likely will you be a contributory to the excuse for the good fellas to commit daylight robbery. If this takes off, maybe the LTA can also implement RUTP (Road Usage Tax Pricing)? Other than being equitable, this usage pricing systems will help to reduce vehicles on the roads leading to less congestion and pollution. People will drive their prized possession only when necessary, such as going to the PUB, having a rub a tub and like Jacko, having a tumbling good time behind the driver's seat.

Err.......yes, I stole the idea from the ERP system which is not copied anywhere else on Earth. Maybe they patented it so no one can emulate it without express permission? Or maybe no one even want to think about it let alone try it out and be labelled as........."highway robbers"?

By losses, I take it they mean underwriting losses meaning that in spite of $1.08 billion premiums received, they still have to foot out another $44.5 million to cover claims. Now, that's claims or claim contingency of $1.5250 billion. There were 925,518 insured vehicles. That means that on average, each vehicle claimed about $1,647 from the criminal activities of motor workshops, lawyers, doctors and assorted villians and not forgetting the obscene bonuses paid to those overseeing the claims.

I didn't claim a cent. Did you? So why are we paying for all this blood sucking fraud?

In my more than 30 years of driving I have never made a claim. They just up the premium and we kenna pay. They didn't need to bother about the scam. No need to sweat the small stuff. No need to do anything. Just pass the buck. Atrocious!

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